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Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle with a $24,000 cash price: (LO 6.2)   Down payment (to finance vehicle), $4,000                          Down payment for lease, $1,200 Monthly loan payment, $560                                                      Monthly lease payment, $440 Length of loan, 48 months                                                                            Length of lease, 48 months Value of vehicle at end of loan, $7,200                                    End-of-lease charges, $600   What other factors should a person consider when choosing between buying or leasing?

Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle with a $24,000 cash price: (LO 6.2)   Down payment (to finance vehicle), $4,000                          Down payment for lease, $1,200 Monthly loan payment, $560                                                      Monthly lease payment, $440 Length of loan, 48 months                                                                            Length of lease, 48 months Value of vehicle at end of loan, $7,200                                    End-of-lease charges, $600   What other factors should a person consider when choosing between buying or leasing?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle with a $24,000 cash price: (LO 6.2)

 

Down payment (to finance vehicle), $4,000                          Down payment for lease, $1,200

Monthly loan payment, $560                                                      Monthly lease payment, $440

Length of loan, 48 months                                                                            Length of lease, 48 months

Value of vehicle at end of loan, $7,200                                    End-of-lease charges, $600

 

What other factors should a person consider when choosing between buying or leasing?

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